§ 27-46-4 Risk retention groups notchartered in this state. – Risk retention groups chartered and licensed in states other than this stateand seeking to do business as a risk retention group in this state shall complywith the laws of this state as follows:
(i) Before offering insurance in this state, a risk retentiongroup shall submit to the commissioner:
(A) A statement identifying the state or states in which therisk retention group is chartered and licensed as a liability insurancecompany, charter date, its principal place of business, and any otherinformation, including information on its membership, that the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder § 27-46-2(11);
(B) A copy of its plan of operations or feasibility study andrevisions of the plan or study submitted to the state in which the riskretention group is chartered and licensed; provided, that the provisionrelating to the submission of a plan of operation or feasibility study shallnot apply with respect to any line or classification of liability insurancewhich:
(I) Was defined in § 15 U.S.C. 3901 et seq. beforeOctober 27, 1986; and
(II) Was offered before that date by any risk retention groupthat had been chartered and operating for not less than three (3) years beforethat date;
(ii) The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study required by §27-46-3(b) at the same time that the revisions is submitted to the commissionerof its chartering state; and
(iii) The risk retention group shall submit a statement ofregistration that designates the commissioner as its agent for the purpose ofreceiving service of legal documents or process;
(2) Financial condition. Any risk retention groupdoing business in this state shall submit to the commissioner:
(i) A copy of the group's financial statement submittedannually to the state in which the risk retention group is chartered andlicensed which shall be certified by an independent public accountant andcontain a statement of opinion on loss and loss adjustment expense reservesmade by a member of the American Academy of Actuaries or a qualified lossreserve specialist, under criteria established by the National Association ofInsurance Commissioners;
(ii) A copy of each examination of the risk retention groupas certified by the commissioner or public official conducting the examination;
(iii) Upon request by the commissioner, a copy of anyinformation or document pertaining to any outside audit performed with respectto the risk retention group; and
(iv) Any information that may be required to verify itscontinuing qualification as a risk retention group under § 27-46-2(11);
(i) Each risk retention group shall be liable for the paymentof premium taxes and taxes on premiums of direct business for risks resident orlocated within this state, and shall report to the commissioner the netpremiums written for risks resident or located within this state. The riskretention group shall be subject to taxation, and any applicable fines andpenalties related to taxation, on the same basis as a foreign admitted insurer;
(ii) To the extent licensed agents or brokers or insuranceproducers are utilized pursuant to § 27-46-12, they shall report to thecommissioner the premiums for direct business for risks resident or locatedwithin this state which those licensees have placed with or on behalf of a riskretention group not chartered in this state;
(iii) To the extent that insurance agents or brokers orproducers are utilized pursuant to § 27-46-12, the agent or broker orinsurance producers shall keep a complete and separate record of all policiesprocured from each risk retention group, which record shall be open toexamination by the commissioner. The total cost of the examinations shall bepaid for in the same manner as set forth in § 27-13-1. These recordsshall, for each policy and each kind of insurance provided under them, includethe following:
(A) The limit of liability;
(B) The time period covered;
(C) The effective date;
(D) The name of the risk retention group which issued thepolicy;
(E) The gross premium charged; and
(F) The amount of return premiums, if any;
(4) Adherence to fair claims settlement practices. Anyrisk retention group, its agents, and representatives shall comply with any lawor regulations regarding claims settlement practices;
(5) Deceptive, false, or fraudulent practices. Anyrisk retention group shall comply with and be subject to the laws of this stateregarding deceptive, false, or fraudulent acts or practices;
(6) Examination regarding financial condition. Anyrisk retention group must submit to an examination by the commissioner todetermine its financial condition if the commissioner of the jurisdiction inwhich the group is chartered and licensed has not initiated an examination ordoes not initiate an examination within sixty (60) days after a request by thecommissioner of this state. Any examination shall be coordinated to avoidunjustified repetition and conducted in an expeditious matter and in accordancewith the NAIC's examiner handbook. The total cost of the examination shall bepaid for in the same manner as set forth in § 27-13-1;
(7) Notice of purchasers. Every application form forinsurance from a risk retention group, and every policy, on its front anddeclaration pages, issued by a risk retention group, shall contain in ten (10)point type the following notice:
NOTICE
THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR RISKRETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONSOF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FORYOUR RISK RETENTION GROUP.
(8) Prohibited acts regarding solicitation or sale.The following acts by a risk retention group are prohibited:
(i) The solicitation or sale of insurance by a risk retentiongroup to any person who is not eligible for membership in the group; and
(ii) The solicitation or sale of insurance, by, or operationof, a risk retention group that is in hazardous financial condition orfinancially impaired;
(9) Prohibition on ownership by an insurance company.No risk retention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a member or owner of the riskretention group, other than in the case of a risk retention group all of whosemembers are insurance companies;
(10) Prohibited coverage. The terms of any insurancepolicy issued by any risk retention group shall not provide, or be construed toprovide, coverage prohibited generally by statute of this state or declaredunlawful by the highest court of this state whose law applies to the policy;
(11) Delinquency proceedings. A risk retention groupnot chartered in this state and doing business in this state shall comply witha lawful order issued in a voluntary dissolution proceeding or in a delinquencyor liquidation proceeding commenced by the state insurance commissioner ifthere has been a finding of financial impairment after an examination undersubdivision (6) of this section; and
(12) Penalties. A risk retention group that violatesany provision of this chapter will be subject to fines and penalties includingrevocation of its right to do business in this state, applicable to licensedinsurers generally.
§ 27-46-4 Risk retention groups notchartered in this state. – Risk retention groups chartered and licensed in states other than this stateand seeking to do business as a risk retention group in this state shall complywith the laws of this state as follows:
(i) Before offering insurance in this state, a risk retentiongroup shall submit to the commissioner:
(A) A statement identifying the state or states in which therisk retention group is chartered and licensed as a liability insurancecompany, charter date, its principal place of business, and any otherinformation, including information on its membership, that the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder § 27-46-2(11);
(B) A copy of its plan of operations or feasibility study andrevisions of the plan or study submitted to the state in which the riskretention group is chartered and licensed; provided, that the provisionrelating to the submission of a plan of operation or feasibility study shallnot apply with respect to any line or classification of liability insurancewhich:
(I) Was defined in § 15 U.S.C. 3901 et seq. beforeOctober 27, 1986; and
(II) Was offered before that date by any risk retention groupthat had been chartered and operating for not less than three (3) years beforethat date;
(ii) The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study required by §27-46-3(b) at the same time that the revisions is submitted to the commissionerof its chartering state; and
(iii) The risk retention group shall submit a statement ofregistration that designates the commissioner as its agent for the purpose ofreceiving service of legal documents or process;
(2) Financial condition. Any risk retention groupdoing business in this state shall submit to the commissioner:
(i) A copy of the group's financial statement submittedannually to the state in which the risk retention group is chartered andlicensed which shall be certified by an independent public accountant andcontain a statement of opinion on loss and loss adjustment expense reservesmade by a member of the American Academy of Actuaries or a qualified lossreserve specialist, under criteria established by the National Association ofInsurance Commissioners;
(ii) A copy of each examination of the risk retention groupas certified by the commissioner or public official conducting the examination;
(iii) Upon request by the commissioner, a copy of anyinformation or document pertaining to any outside audit performed with respectto the risk retention group; and
(iv) Any information that may be required to verify itscontinuing qualification as a risk retention group under § 27-46-2(11);
(i) Each risk retention group shall be liable for the paymentof premium taxes and taxes on premiums of direct business for risks resident orlocated within this state, and shall report to the commissioner the netpremiums written for risks resident or located within this state. The riskretention group shall be subject to taxation, and any applicable fines andpenalties related to taxation, on the same basis as a foreign admitted insurer;
(ii) To the extent licensed agents or brokers or insuranceproducers are utilized pursuant to § 27-46-12, they shall report to thecommissioner the premiums for direct business for risks resident or locatedwithin this state which those licensees have placed with or on behalf of a riskretention group not chartered in this state;
(iii) To the extent that insurance agents or brokers orproducers are utilized pursuant to § 27-46-12, the agent or broker orinsurance producers shall keep a complete and separate record of all policiesprocured from each risk retention group, which record shall be open toexamination by the commissioner. The total cost of the examinations shall bepaid for in the same manner as set forth in § 27-13-1. These recordsshall, for each policy and each kind of insurance provided under them, includethe following:
(A) The limit of liability;
(B) The time period covered;
(C) The effective date;
(D) The name of the risk retention group which issued thepolicy;
(E) The gross premium charged; and
(F) The amount of return premiums, if any;
(4) Adherence to fair claims settlement practices. Anyrisk retention group, its agents, and representatives shall comply with any lawor regulations regarding claims settlement practices;
(5) Deceptive, false, or fraudulent practices. Anyrisk retention group shall comply with and be subject to the laws of this stateregarding deceptive, false, or fraudulent acts or practices;
(6) Examination regarding financial condition. Anyrisk retention group must submit to an examination by the commissioner todetermine its financial condition if the commissioner of the jurisdiction inwhich the group is chartered and licensed has not initiated an examination ordoes not initiate an examination within sixty (60) days after a request by thecommissioner of this state. Any examination shall be coordinated to avoidunjustified repetition and conducted in an expeditious matter and in accordancewith the NAIC's examiner handbook. The total cost of the examination shall bepaid for in the same manner as set forth in § 27-13-1;
(7) Notice of purchasers. Every application form forinsurance from a risk retention group, and every policy, on its front anddeclaration pages, issued by a risk retention group, shall contain in ten (10)point type the following notice:
NOTICE
THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR RISKRETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONSOF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FORYOUR RISK RETENTION GROUP.
(8) Prohibited acts regarding solicitation or sale.The following acts by a risk retention group are prohibited:
(i) The solicitation or sale of insurance by a risk retentiongroup to any person who is not eligible for membership in the group; and
(ii) The solicitation or sale of insurance, by, or operationof, a risk retention group that is in hazardous financial condition orfinancially impaired;
(9) Prohibition on ownership by an insurance company.No risk retention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a member or owner of the riskretention group, other than in the case of a risk retention group all of whosemembers are insurance companies;
(10) Prohibited coverage. The terms of any insurancepolicy issued by any risk retention group shall not provide, or be construed toprovide, coverage prohibited generally by statute of this state or declaredunlawful by the highest court of this state whose law applies to the policy;
(11) Delinquency proceedings. A risk retention groupnot chartered in this state and doing business in this state shall comply witha lawful order issued in a voluntary dissolution proceeding or in a delinquencyor liquidation proceeding commenced by the state insurance commissioner ifthere has been a finding of financial impairment after an examination undersubdivision (6) of this section; and
(12) Penalties. A risk retention group that violatesany provision of this chapter will be subject to fines and penalties includingrevocation of its right to do business in this state, applicable to licensedinsurers generally.
§ 27-46-4 Risk retention groups notchartered in this state. – Risk retention groups chartered and licensed in states other than this stateand seeking to do business as a risk retention group in this state shall complywith the laws of this state as follows:
(i) Before offering insurance in this state, a risk retentiongroup shall submit to the commissioner:
(A) A statement identifying the state or states in which therisk retention group is chartered and licensed as a liability insurancecompany, charter date, its principal place of business, and any otherinformation, including information on its membership, that the commissioner ofthis state may require to verify that the risk retention group is qualifiedunder § 27-46-2(11);
(B) A copy of its plan of operations or feasibility study andrevisions of the plan or study submitted to the state in which the riskretention group is chartered and licensed; provided, that the provisionrelating to the submission of a plan of operation or feasibility study shallnot apply with respect to any line or classification of liability insurancewhich:
(I) Was defined in § 15 U.S.C. 3901 et seq. beforeOctober 27, 1986; and
(II) Was offered before that date by any risk retention groupthat had been chartered and operating for not less than three (3) years beforethat date;
(ii) The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study required by §27-46-3(b) at the same time that the revisions is submitted to the commissionerof its chartering state; and
(iii) The risk retention group shall submit a statement ofregistration that designates the commissioner as its agent for the purpose ofreceiving service of legal documents or process;
(2) Financial condition. Any risk retention groupdoing business in this state shall submit to the commissioner:
(i) A copy of the group's financial statement submittedannually to the state in which the risk retention group is chartered andlicensed which shall be certified by an independent public accountant andcontain a statement of opinion on loss and loss adjustment expense reservesmade by a member of the American Academy of Actuaries or a qualified lossreserve specialist, under criteria established by the National Association ofInsurance Commissioners;
(ii) A copy of each examination of the risk retention groupas certified by the commissioner or public official conducting the examination;
(iii) Upon request by the commissioner, a copy of anyinformation or document pertaining to any outside audit performed with respectto the risk retention group; and
(iv) Any information that may be required to verify itscontinuing qualification as a risk retention group under § 27-46-2(11);
(i) Each risk retention group shall be liable for the paymentof premium taxes and taxes on premiums of direct business for risks resident orlocated within this state, and shall report to the commissioner the netpremiums written for risks resident or located within this state. The riskretention group shall be subject to taxation, and any applicable fines andpenalties related to taxation, on the same basis as a foreign admitted insurer;
(ii) To the extent licensed agents or brokers or insuranceproducers are utilized pursuant to § 27-46-12, they shall report to thecommissioner the premiums for direct business for risks resident or locatedwithin this state which those licensees have placed with or on behalf of a riskretention group not chartered in this state;
(iii) To the extent that insurance agents or brokers orproducers are utilized pursuant to § 27-46-12, the agent or broker orinsurance producers shall keep a complete and separate record of all policiesprocured from each risk retention group, which record shall be open toexamination by the commissioner. The total cost of the examinations shall bepaid for in the same manner as set forth in § 27-13-1. These recordsshall, for each policy and each kind of insurance provided under them, includethe following:
(A) The limit of liability;
(B) The time period covered;
(C) The effective date;
(D) The name of the risk retention group which issued thepolicy;
(E) The gross premium charged; and
(F) The amount of return premiums, if any;
(4) Adherence to fair claims settlement practices. Anyrisk retention group, its agents, and representatives shall comply with any lawor regulations regarding claims settlement practices;
(5) Deceptive, false, or fraudulent practices. Anyrisk retention group shall comply with and be subject to the laws of this stateregarding deceptive, false, or fraudulent acts or practices;
(6) Examination regarding financial condition. Anyrisk retention group must submit to an examination by the commissioner todetermine its financial condition if the commissioner of the jurisdiction inwhich the group is chartered and licensed has not initiated an examination ordoes not initiate an examination within sixty (60) days after a request by thecommissioner of this state. Any examination shall be coordinated to avoidunjustified repetition and conducted in an expeditious matter and in accordancewith the NAIC's examiner handbook. The total cost of the examination shall bepaid for in the same manner as set forth in § 27-13-1;
(7) Notice of purchasers. Every application form forinsurance from a risk retention group, and every policy, on its front anddeclaration pages, issued by a risk retention group, shall contain in ten (10)point type the following notice:
NOTICE
THIS POLICY IS ISSUED BY YOUR RISK RETENTION GROUP. YOUR RISKRETENTION GROUP MAY NOT BE SUBJECT TO ALL OF THE INSURANCE LAWS AND REGULATIONSOF YOUR STATE. STATE INSURANCE INSOLVENCY GUARANTY FUNDS ARE NOT AVAILABLE FORYOUR RISK RETENTION GROUP.
(8) Prohibited acts regarding solicitation or sale.The following acts by a risk retention group are prohibited:
(i) The solicitation or sale of insurance by a risk retentiongroup to any person who is not eligible for membership in the group; and
(ii) The solicitation or sale of insurance, by, or operationof, a risk retention group that is in hazardous financial condition orfinancially impaired;
(9) Prohibition on ownership by an insurance company.No risk retention group shall be allowed to do business in this state if aninsurance company is directly or indirectly a member or owner of the riskretention group, other than in the case of a risk retention group all of whosemembers are insurance companies;
(10) Prohibited coverage. The terms of any insurancepolicy issued by any risk retention group shall not provide, or be construed toprovide, coverage prohibited generally by statute of this state or declaredunlawful by the highest court of this state whose law applies to the policy;
(11) Delinquency proceedings. A risk retention groupnot chartered in this state and doing business in this state shall comply witha lawful order issued in a voluntary dissolution proceeding or in a delinquencyor liquidation proceeding commenced by the state insurance commissioner ifthere has been a finding of financial impairment after an examination undersubdivision (6) of this section; and
(12) Penalties. A risk retention group that violatesany provision of this chapter will be subject to fines and penalties includingrevocation of its right to do business in this state, applicable to licensedinsurers generally.
